Economy of Cyprus

By | April 29, 2022

According to cheeroutdoor, Cyprus is an agro-industrial country with a developed service sector. The capture of the north of the country in ser. 1970s dealt a severe blow to the country’s economy. However, the southern part managed to recover relatively quickly and surpass the pre-occupation economic indicators. From con. 1990s The Cypriot economy showed fairly high growth rates – 4-5%. (In 2002 economic growth was only 2.2%). Economic growth was accompanied by almost full employment. For almost 15 years, unemployment did not exceed 3.6% (3.0% in 2001). GNP per capita CYP 8700 (2002), inflation 2.0% (2001).

The service sector accounts for 75.5% of GDP, agriculture – 4.6%, industry – 19.9% (2001). This circumstance is largely due to the favorable geographical position of Cyprus on international sea and air routes from Europe to the countries of the Near and Middle East and Northeast Africa. The main service sectors are international tourism, financial and business services, shipping and telecommunications.

Cyprus is a recognized leader in international tourism. The main resorts: Paphos, Limassol, Larnaca, Ayia Napa. In 2001, K. received St. 3.5 million tourists, with tourism receipts of CYP 1.2 billion.

The Cyprus Merchant Marine includes St. 1250 vessels with a carrying capacity of St. 1000 tons

An important source of income is banking services and services for registering enterprises with preferential taxation (offshore). At the moment, Cyprus is under pressure from international organizations that combat money laundering and tax evasion, which has led to a certain tightening of legislation.

The most important industries are: food (mainly the production of wine, olive oil), textile, chemical and metalworking.

Agriculture: viticulture, fruit growing. Main agricultural crops: wheat, barley, potatoes, melons, tobacco, almonds, olive tree, walnut, citrus fruits. Animal husbandry is developed in the mountainous regions: sheep, goats, pigs, cattle.

The main mode of transport is automobile. The total length of motorways is 10,633 km, of which 6,249 km are paved. The railroad is missing.

Main seaports: Limassol, Larnaca, Paphos. There are 15 airports, of which 7 are large.

Telephone communication is modern and extensive, covering the entire territory of the country. There are 405,000 telephone subscribers, 68,000 mobile subscribers (1998), 150,000 Internet users, and 6 providers (2001).

The current economic policy of Cyprus is determined by joining the EU in 2004. The government is trying to bring the economy in line with the criteria of the Maastricht agreements. The planned GDP growth is 4%, unemployment will be kept below 3%, and inflation should not exceed 2.5%.

From Ser. 1970s the main task of the social policy of Cyprus was to solve the problems caused by the occupation of the north of the country. In fact, a third of the country’s population lost their homes and jobs at once, becoming refugees. But if at first the social policy of the state focused on providing a living wage for refugees in the form of benefits, then over time the emphasis shifted to providing the general population with long-term housing loans, the possibility of obtaining a second education and medical care, developing a social insurance system, and providing loans for education abroad. Much attention is paid to the development of social infrastructure: the construction of schools, hospitals, nursing homes and leisure centers. The main objectives of social policy in Cyprus still remain to ensure a minimum acceptable standard of living for all citizens, especially those who cannot fully participate in the production process, and an even redistribution of national income and tax burden among different population groups and regions (refugee support). Budget expenditures for social needs 318 million Cypriot pounds (2001).

Government budget CYP 2.2 billion, budget deficit 2.8% (2001). Domestic debt 231.6 million pounds.

Due to the small volume of the domestic market, foreign trade plays a particularly important role for Cyprus. Imports exceed exports. In 2001, total exports were 628 million CYP and imports were 2.5 billion CYP. Agricultural products (citrus fruits, potatoes, grapes, wine), clothing and textile products, and cement are exported. Main foreign trade partners: Great Britain, Greece, Germany, Russian Federation, Syria, Lebanon. The EU countries account for up to 49.5% of all exports. Consumer goods, oil and oils, engineering products, vehicles are imported. The main suppliers of imported products: EU countries 50.8% (including Great Britain, Greece, Germany, Italy) and the USA.

Economy of Cyprus